A 'shocking' split verdict in trial of former Secaucus Mayor Elwell

A jury acquitted former Secaucus Mayor Dennis Elwell of conspiracy and attempted extortion Wednesday but found him guilty of bribery for accepting a $10,000 cash payment from an FBI informant posing as a corrupt developer.

Elwell, 66, appeared steely as the forewoman announced the split verdict in a packed courtroom after about seven hours of deliberations over two days in federal court in Newark.

As the second of two “not guilty” verdicts were announced, a cry of relief erupted from the front rows where Elwell’s wife, daughter, brother and other relatives and friends were seated behind the defendant. The euphoria quickly turned to gasps of shock as the final verdict of “guilty” was delivered on the bribery count.

U.S. District Judge Jose L. Linares polled each of the seven women and five men on the jury, all of whom concurred with the verdicts. The judge set sentencing for Nov. 15. The bribery offense carries a maximum term of 10 years in prison.

With the courtroom nearly empty, Elwell’s sobbing wife, Annette, wrapped her arms around her husband in a tight embrace and he patted her gently on the back.

“I can’t believe they could do this to him,” she said, as the couple walked out.

Elwell declined to comment in the hallway, but his lawyers voiced disappointment and vowed an appeal.

“We’re shocked by the verdict,” Thomas Cammarata said.

“It seems inconsistent,” he said, noting there was “very little difference in the elements” of the extortion and bribery charges, and that each involved the promise of official action for money.

“Certainly, we think there are grounds for an appeal,” Cammarata said, noting that former Jersey City Deputy Mayor Leona Beldini is appealing a similar split verdict and a three-year sentence in a related case.

“It’s very difficult to understand the verdict,” co-counsel Jeffrey Garrigan added. “That they would convict him on bribery and acquit him on extortion, I don’t understand.”

U.S. Attorney Paul Fishman said the jury clearly found that Elwell knew what he was getting into when he accepted the cash through a middleman from the FBI informant, Solomon Dwek.

“The bottom line here is that a sitting mayor took $10,000 from somebody who wanted to do business with the town and wanted an unfair, illegal advantage,” Fishman said.

He added that jurors “were obviously completely unsatisfied” with Elwell’s multiple explanations for why he took the money.

A decorated Vietnam War infantry veteran and a partner with his brothers in a trucking company, Elwell became the fourth defendant to be convicted at trial as a result of the FBI’s “Bid Rig III” investigation, the largest public corruption and money-laundering sting in state history. More than 30 others charged in the probe have pleaded guilty.

Elwell was accused of pocketing $10,000 cash, and agreeing to accept an additional $20,000, in exchange for his “official assistance, action and influence” in expediting approvals for a 400-room hotel project.

A mayor for nine years until days after his arrest on July 23, 2009, Elwell testified he never promised to do anything illegal in exchange for what he believed would be a legitimate campaign contribution.

He sat down twice with Dwek; a go-between, Ronald Manzo; and a third conspirator, Edward Cheatam, at meetings that were captured on a hidden video camera worn by Dwek and played for the jury. The videos showed a fast-taking developer eager to pay cash to smooth out any “speed bumps” that could impede his plans.

Dwek, an admitted real estate swindler from Deal, agreed to cooperate with the FBI after he was caught in a $50 million bank-fraud scheme in 2006. He was prepped to make his fourth appearance as the government’s star witness at Elwell’s trial. That role, however, fell to Manzo after Dwek was caught lying to the FBI about his recent arrest in Maryland for failing to return a rented car.

During a break in the trial, Linares revoked Dwek’s $10 million bail and sent him to jail to await sentencing this fall. Prosecutors said the breach of his cooperation agreement will cost him dearly when he is sentenced.

Manzo, 67, a former insurance broker from Bayonne who was previously convicted of insider trading, had been Elwell’s co-defendant until May, when he pleaded guilty to an extortion conspiracy count and implicated Elwell in a bribery scheme.

On the stand, Manzo recounted how he received the cash from Dwek in a hotel parking lot after a lunch meeting with Elwell on May 28, 2009, and delivered it to the mayor in the hotel bar.

Elwell testified that he knew he couldn’t accept such a large cash contribution, but he reluctantly agreed to hold the money for Manzo until it could be converted into checks to be distributed to various candidates as legal campaign contributions.

The defense argued to the jury that Elwell was set up by Manzo, who they said lied to him and to the jury, and duped Dwek into believing that the mayor was willing to pocket bribes because Manzo hoped to profit from their relationship.

But instead of confronting Manzo and Dwek at their last meeting about the purported checks, the video shows Elwell confirming to Dwek that he got the $10,000 cash and was happy with it.